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Demand For Cooking Gas Crashes Amid Rising Prices, Marketers Lament -

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Business

Demand For Cooking Gas Crashes Amid Rising Prices, Marketers Lament

Demand For Cooking Gas Crashes Amid Rising Prices, Marketers Lament

Following the continuous rise in prices, the demand for Liquefied Natural Gas (LPG) popularly known as cooking gas has dropped to a record low across the country.

THECONSCIENCENG market report gathered on Tuesday showed that consumers had lately either reduced consumption or ditched the commodity for cheaper alternatives such as coal and firewood.

President, Nigerian Gas Association, Ed Ubong,  said during a downstream event in Lagos that national annual consumption was currently between 1.3mn and 1.5mn metric tons from the Federal Government’s annual target of 5mn metric tons.

This brings to fore, the achievement of President Buhari’s National Gas Expansion Programme which seeks to deepen local gas usage within the next decade.

Executive Secretary, Nigerian Association of Liquefied Petroleum Gas Marketers, NALPGAM,  Bassey Essien, confirmed to press men during an interview that the drop in consumption rate was due to increasing prices.

 According to him, price of 20 metric tons of cooking gas as of Tuesday shot up from N12mn to N12.8mn.

“Prices have been volatile for a while, and it’s because the purchasing power has dropped. Gas is no longer affordable, and buyers are either regulating use or found alternatives. As at today, a 20-metric-ton of gas sells for about N12.8mn. Price has hovered around 10mn-12mn before now. Just imagine what we bought last for N12mn rising by N800, 000 for one truck,” he said in a recent media chat.

While speaking during one of the technical sessions on the topic, ‘Gas as a catalyst for sustainable economic development- The role of Nigerian Content’, at ‘The Nigerian Content Midstream and Downstream Oil and Gas Summit 2022’ organised by the Nigerian Content and Development Monitoring Board, NCDMB in Lagos on Tuesday, gas stakeholders unanimously agreed that national gas consumption was currently very low. They expressed worry over the dwindling purchasing power of Nigerians. They, however, did not state what current actual consumption or demand was when compared to figures already quoted by Ubong.

The MD/CEO, TECNO Gas Ltd, Nkechi Obi, during the panel session, said gas pricing was one of the reasons for low demand across the country.

“Currently, gas demand is getting very, very low across the country, and this is due to high gas pricing”, she said, adding that lack of government policy to drive demand also formed part of the reason demand was abysmally low.

She urged the Federal Government to intervene in terms of formulation of policy and funding to drive up demand, adding that gas was a developmental commodity.

 

 

Jam theconscienceng

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